Congress Passes ABLE Act to Create Tax-Free Savings Accounts for People with Disabilities | Law Firm Newswire

Congress Passes ABLE Act to Create Tax-Free Savings Accounts for People with Disabilities

Congress has passed a new law allowing individuals with disabilities and their families to create tax-free savings accounts.

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) December 18, 2014 – The Achieving a Better Life Experience or ABLE Act passed Congress and is expected to be signed by President Obama. The law allows family members of individuals with disabilities to deposit funds in special accounts, the income for which will remain tax-free, provided it is spent on qualified expenses such as housing, health care, education and transportation.

“This is great news for people with special needs and their families,” said Andrew H. Hook, a Virginia special needs planning attorney with Hook Law Center, with offices in Virginia Beach and northern Suffolk. “These savings accounts will allow individuals with disabilities to lead more independent lives.”

In addition to permitting tax-free savings for qualified expenses, ABLE accounts will allow people with disabilities to build their assets without affecting their eligibility for public assistance programs. The ABLE Act provides that funds within the accounts will not be counted when determining eligibility for need-based programs such as Medicaid and Supplemental Security Income (SSI), though some limitations are included in the legislation. Family members of eligible individuals with disabilities can contribute up to $14,000 per year to such an account, up to a maximum of $100,000. If an account exceeds $100,000, SSI payments will be suspended. Only individuals who became disabled prior to age 26 will benefit from this new legislation.

The new legislation has been described as one of the most important laws to affect Americans with disabilities since the passage of the Americans with Disabilities Act of 1990.

“I look forward to helping special needs families use this important new tool to build a brighter future,” said Hook.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • Planning for Minors in Your Estate Plan
    <p>Many of our clients have minor children in their families, whether they are children, grandchildren, or other relatives. If you want to make these children part of your estate plan, there are a few important considerations to make before you do so. The first set of issues deals with naming children as beneficiaries or heirs [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/10/13/planning-for-minors-in-your-estate-plan/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/10/13/planning-for-minors-in-your-estate-plan/" target="_blank">Planning for Minors in Your Estate Plan</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • ESTATE PLANNING WITH 529 PLANS
    <p>As the month of August came to an end, I prepared to send my oldest child to college.  This entailed not only shopping for twin XL sheets and sharing my wisdom with her but paying that first tuition bill.  I thought to myself as I stroked that check, “how do people do this?” How are [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/10/06/estate-planning-with-529-plans/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/10/06/estate-planning-with-529-plans/" target="_blank">ESTATE PLANNING WITH 529 PLANS</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Someone Has Power of Attorney Over Your Family Member: Can You Request Information?
    <p>An important part of lifetime planning is the power of attorney. A power of attorney gives one or more persons the power to act on the principal’s behalf as their agent. The power may be limited to a particular activity, such as closing on the sale of a home, or be more general in its [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/30/someone-has-power-of-attorney-over-your-family-member-can-you-request-information/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/30/someone-has-power-of-attorney-over-your-family-member-can-you-request-information/" target="_blank">Someone Has Power of Attorney Over Your Family Member: Can You Request Information?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • When is a Charitable Contribution Not Deductible?
    <p>When taxpayers fail to comply with noncash charitable contribution reporting requirements.. If you itemize your deductions on your tax return, you may be eligible to deduct charitable contributions to offset your tax liability. Charitable contributions can be cash donations or noncash contributions, such as investments, household items, automobiles, or land. Additional reporting and substantiation requirements [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/24/when-is-a-charitable-contribution-not-deductible/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/24/when-is-a-charitable-contribution-not-deductible/" target="_blank">When is a Charitable Contribution Not Deductible?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • New Tax Legislation Introduced – What to Expect
    <p>Earlier this year we reported President Biden’s tax plan which included items such as raising the corporate tax rate, raising the highest marginal income tax rate, eliminating the step-up in basis at a taxpayer’s death and revising the estate tax scheme to be similar to the capital gains tax we are currently familiar with. These [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2021/09/17/new-tax-legislation-introduced-what-to-expect/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2021/09/17/new-tax-legislation-introduced-what-to-expect/" target="_blank">New Tax Legislation Introduced - What to Expect</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required